Managing finances is a big responsibility. See how to decide between your piggy bank and a savings account to keep your money safe.
April is Youth Financial Literacy Month and to celebrate we’re sharing resources and activities you can use to help guide the children in your life. Below is a video to watch together, article to read, questions to discuss, and links to a related comic and activity sheet.
Imagine this: You’re out for a walk and you find a stack of shiny gold bars. Where do you put your treasure to keep it safe?
- Do you hide it in your room?
- Do you bury it in the ground?
- Do you carry it with you at all times?
You have to make a similar choice with your money. There are many places you can save your money to keep it safe.
Saving Money In A Piggy Bank
A piggy bank keeps your money in one spot. This makes it easier for you to find your money when you need it.
Keeping your savings in your room is handy, but it may not be safe from sneaky siblings. Also, when your money is close by, you may be tempted to spend it before you’ve reached your savings goal.
Saving Money In A Savings Account
Did you know that you earn money when you make deposits into a savings account?
Interest or dividends is the money you earn from a bank or credit union for keeping your money in a savings account. The longer you keep your money there, the more interest or dividends you’ll earn.
A savings account is safer than a piggy bank and earns you extra money, too!
Questions To Discuss
- Where do you keep your money right now?
- Why might you choose to keep your money in a piggy bank?
- Why might you choose to keep your money in a savings account?
- What’s interest or dividends?